Grayscale moved part of its Ether (ETH) to staking-related addresses, in what is seen as a bet on a regulatory shift that could impact ETFs and large institutional holders. According to Arkham Intelligence, on September 17, 40,261 ETH (approximately $120 million) were transferred from cold storage, equivalent to 2.68% of the estimated 1.5 million ETH it manages. This move is conservative yet operational, signaling staking trials ahead of potential regulatory approval.
Movement and Context
The maneuver reflects Grayscale’s technical preparation to enable staking, while maintaining a prudent profile relative to its total holdings.
The market interprets this action as a step toward incorporating staking into Ether-related products, including the ETHE trust, which manages over $4.8 billion in ETH. It is seen as an operational validation ahead of possible product adjustments.
Analysts highlight the potential impact:
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Markus Thielen, Head of Research at 10x Research: “Staking for Ether ETFs would increase yields and could reshape the market.”
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Ryan McMillin, CIO of Merkle Tree Capital: “A stable yield is an important factor for institutional investors,” reinforcing its appeal compared to Bitcoin.
Implications and Regulatory Risks
The SEC continues to create uncertainty around the classification of PoS tokens and how staking is integrated into ETP products. Commissioners and internal divisions have raised concerns about incorporating staking rewards, affecting timelines and final product design.
Grayscale is evaluating several tactical options:
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Solo staking
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Pool participation
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Liquid staking via protocols like Lido, Mantle Staked Ether (METH), or Frax Ether
Each option carries different custody profiles, counterparty risks, and compliance considerations, which will influence institutional adoption.
For treasuries and institutional investors, the move suggests adjustments in capital flows, product design, and yield expectations. The average staking yield stands at 3.8% (as of September 15, 2025), with potential impacts on liquidity and ETF competition, where issuers like BlackRock or Fidelity could respond to mixed flow signals.
The transfer of 40,261 ETH serves as an operational test for institutional staking feasibility under a regulatory framework still in development. The industry will closely watch future SEC decisions and the competitive response of other ETF issuers.
